SumiSaujana To Supply More Biodegradable Materials This Year In Diversification Push
By Zufazlin Baharuddin
KUALA SELANGOR, Jan 18 (Bernama) -- SumiSaujana Group Bhd, through wholly-owned subsidiary SumiSaujana TCM Chemicals Sdn Bhd (SSTCM), plans to diversify further into bio-based specialty chemical materials this year, building on its core capabilities in producing both ready-formulated and custom-made specialty chemicals and additives.
SumiSaujana executive director and chief operating officer Ramli Mohamad said the company has kicked off the effort in December 2025 through a collaboration with Zhangjiagang CoolisT Life Technology Co Ltd (CoolisT Group) to jointly develop and commercialise bio-based polyols derived from renewable vegetable oils for use in polyurethane foams for CoolisT Group’s furniture and bedding products.
“We are entering the biopolymer sector, focusing on biodegradable products. Globally, there is growing concern about toxic substances and these are products that can cause health problems.
“So customers are shifting towards raw materials made from biodegradable substances and that is where we aim to supply more biodegradable materials,” he told Bernama.
He said SSTCM’s chemical products, mostly comprising drilling fluids, serve various sectors in the oil and gas industry, covering upstream, midstream and downstream operations.
Hence, Ramli said, the diversification is timely for the company to accelerate the global adoption of sustainable solutions which deliver bio-based chemical materials that meet international environmental and performance standards.
Besides, in line with the expansion of data centres in Malaysia, SSTCM is undertaking research and development on sustainable specialty chemical solutions for data centre cooling applications, aimed at improving energy efficiency and reducing carbon intensity, he added.
He said of the RM74.4 million raised from SumiSaujana Group’s initial public offering (IPO) last year, RM7.6 million has been allocated for research and development that will support the ACE Market-listed company’s diversification into biodegradable chemicals this year.
On the outlook, Ramli said the company will focus on strengthening internal operations while ensuring its existing markets remain secure.
“Revenue remains stable but margins are tighter due to geopolitical uncertainties, so maintaining our market position is very critical,” he said, noting that the company is taking steps to stay resilient and strengthen all aspects of its operations.
The oil and gas specialty chemicals manufacturer, which has been operating since 2010, has successfully positioned itself in key international markets, with over 70 per cent of its revenue generated from overseas.
Last Friday, SumiSaujana share price inched down half a sen to 11 sen with 329,700 shares traded at the close.
-- BERNAMA